The increase in cargo volumes through the Port of Beira in 2020 put a lot of strain on the availability of empty containers, increasing free on board (FOB) costs.Speaking to Freight News, Kevin Hutton, general manager of the Beira Logistics Terminals (BLT), said the increased costs were due to container repositioning and shipments being rolled over.“While the increased volumes were very good for the company and the Beira Corridor, they highlighted the need to improve efficiencies on the warehousing side.”Hutton said this had seen the company upgrading its system processes, equipment and machinery – as well as its overall warehousing. “This ensured quicker stock rotation through the warehouse and report accuracy. We are also in the process of increasing our current warehousing space and an additional 4800 square metres of capacity will be introduced by May this year.”It was an investment that would serve BLT well, said Hutton, as volumes were expected to continue to rise.“ Volu me s should start to increase in the second and third quarters of 2021,” he said. “New deposits have been opened up and mining houses needing to get product to market are increasingly seeing the benefit of using Beira. In many instances, it is the most natural choice for these volumes. The Beira corridor has the advantage of being the shortest route from mine to port warehouses. This means mining houses are able to get product to market in a quick and cost-effective manner.”But, Hutton emphasised, for the corridor to continue drawing volumes, it was critical that all corridor stakeholders played their part in ensuring the current delays being experienced were resolved. One of the major challenges on the corridor has been the delays seen as a result of the new electronic seals being implemented at the Port of Beira. “This has, in particular, slowed trucks down to a crawl – which then adds further pressure on warehousing facilities to move cargo out in shorter time frames. BLT has, however, implemented new systems and processes to counter this where possible.”He said in terms of the global Covid-19 pandemic, the Beira port had proven to be extremely resilient – and as a result it had drawn more volumes in 2020.“A lot of ports were running at 50% capacity or less, but the Port of Beira remained pretty much unchanged and was able to deliver the much-needed capacity in the market. I believe that the mining houses have seen that the Beira Corridor is a viable and competitive option versus the traditional routes via South Africa.”He said considering the vast number of resources available in the region, the opportunities for the Beira Corridor remained vast. “The corridor just needs to make sure it remains competitive and continues to offer excellent services to the market.”The Beira corridor has the advantage of being the shortest route from mine to port warehouses.– Kevin Hutton“
